Chartering & Brokerage Practice Test

Think of a bill of lading in two simple parts: who is supposed to receive the goods (named consignee vs. order) and whether the document carries a note about the cargo’s condition (claused vs. clean). A named consignee makes the bill straight and non-negotiable, because delivery is to a specific person or company. If the document also has a note on the face about the cargo being damaged, the carrier is adding a clause describing an exception to the shipment’s condition, which makes it claused. So when you have a document that is issued to a named consignee and also carries a damage remark on the face, you get a claused straight bill of lading. This combination is what distinguishes it from a clean straight bill (no damage noted), a claused bill without a named consignee, or an order bill (to order/negotiable).